Hospital nurse
IBTimes UK

The Victorian government has pledged to scrap plans for forced hospital mergers, apart from proposing a significant AU$1.5 billion boost to the state's public health system.

This additional cash will support a record wage increase for nurses and midwives over the next three years, while simultaneously addressing the extraordinary demand that hospitals are facing and guaranteeing that every dollar is directed toward improving patient care, Nine News reported.

In the most recent budget, the state had allotted AU$8.8 billion to restructure hospital funding to provide world-class care that is more effective and efficient while also preparing for future healthcare requirements, according to Riverine Herald.

The government is now discussing hospital budgets for the 2024–2025 fiscal year, amid worries about possible staff reductions resulting from lower funding.

"We know our hospitals have just seen their busiest year on record - that's why we're giving them the funding they told us they needed," a government spokeswoman said. "We've worked with hospitals to develop their final budgets - making sure that every dollar prioritizes patient care.

"We backed our nurses with a 28% rise and now we're backing our hospitals," she added, according to Nine News. "No hospitals will close as a result of this process. What we have at the moment is a situation where, for instance, some of our regional hospitals are overflowing."

Premier Jacinta Allan declared on Wednesday that the state government will refrain from forcing hospital mergers while continuing talks with health services. The decision was made with the effects of the pandemic, inflation, labor shortages, and an aging population in mind.

"Our task is to work with hospitals to provide them with the funding and the support that they need to ensure that we can continue to have Victorians access great world-class healthcare," she told reporters.